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Reswitching and Decreasing Demand for Capital in a Model with a Continuum of Linear Techniques

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  • Saverio M. Fratini

Abstract

We consider a model of production with a continuum of linear techniques and examine the related choice of technique and shape of the demand for capital schedule. The primary conclusion regards the possibility of a decreasing demand for capital schedule combined with reswitching and reverse capital deepening.

Suggested Citation

  • Saverio M. Fratini, 2009. "Reswitching and Decreasing Demand for Capital in a Model with a Continuum of Linear Techniques," EERI Research Paper Series EERI_RP_2009_26, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2009_26
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2009_26.pdf
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    More about this item

    Keywords

    Production; continuum linear techniques.;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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